Proctor & Gamble investing in new plants

April 9, 2009

ALBANY, GA — Proctor & Gamble is eliminating two paper machines within the next month from its Albany plant and is investing in alternate locations in Utah, Wisconsin, Missouri and Pennsylvania, according to the Albany Herald.

Continuing operations at the Albany plant is no longer feasible for the company because of the rising costs to ship raw goods from Canada to the Southeast United States and because of Georgia''s taxation on energy usage, the story stated.

Plant Manager Trey Bloodworth said: "Georgia is one of 10 states that still have the tax on energy used in manufacturing,” Bloodworth said. “None of the competing in-house paper plants have that tax. Missouri had it and they repealed it. Wisconsin had it and also repealed it. We’re competing against sister plants for volume and now they have a bigger cost advantage over us."

Health care costs are also affecting the plant''s bottom line as they are 19 percent higher at the Albany plant than Proctor & Gamble''s national average, the story noted.

Without help from the Georgia General Assembly to "level the playing field" so the Albany plant can compete with sister plants across the U.S., it is likely the plant''s profitability will continue to dwindle, the story added.